On Wednesday, after the closing bell, PayPal Holdings (NASDAQ:$PYPL) posted quarterly results that surpassed Wall Street expectations. Following the news, shares of the California-based company increased more than 3% in after-hours trade.
Let’s take a look at how PayPal did compared with what Wall Street expected:
- Earnings Per Share: 46 cents versus 43 cents expected, according to Thomson Reuters
- Revenue: $3.14 billion versus $3.09 billion expected, according to Thomson Reuters
Venmo, which is PayPal’s subsidiary, more than doubled its total payment volume, increasing 103% year over year.
For the second quarter, PayPal generated $3.14 billion in revenue, when analysts expected $3.09. This marks an 18.3% increase from 2016. Also, adjusted earnings per share (not including one-time expenses) beat Wall Street predictions, at 46 cents, instead of 43 cents.
In addition, PayPal increased its guidance for the full year. As of right now, it expects adjusted earnings per share to be between the range of $1.80 and $1.84 on revenue between $12.78 billion and $12.88 billion. According to Thomson Reuters consensus estimates, analysts had expected earnings of $1.78 per share on $12.72 billion in revenue.
Not only did PayPal’s quarterly results beat expectations, so did the company’s current-quarter guidance. PayPal expects earnings per share between 42 cents and 44 cents on revenue between $3.14 and $3.19 billion. According to Thomson Reuters consensus estimates, analysts predicted earnings of 42 cents per share on revenue of $3.13 billion.
Additionally, in the report, PayPal said that mobile payment volume had increased 50% in the quarter, coming in at $36 billion.
Last but not least, PayPal disclosed numerous partnerships that would allow the company to extend its international audience. Among the agreements announced was a deal with Baidu (NASDAQ:$BIDU) in China.
As mentioned, in after hours trade, PayPal shares were up more than 3%. They closed Wednesday at $58.79.
Featured Image: Depositphotos/© prykhodov
